Hi. My new client has taken distribution but did not pay himself reasonable comp as of Jan first till now. I send him IRS's procedures for compensating for shareholder-employees and officer.... We figured his salary out( two days ago) and next week would be his first payroll. My question is: can we run payroll for July first till Sep 30th for missed period before Sep 30th? I mean for third quarter. In general, if a client has taken distribution but did not have payroll for some part of the year(quarteres1 & 2) what we can do for him? Is there any reclassification to reverse taken distributions to payroll tax. As we know, Client missed some part of the year for payroll.

Any comment would be appreciated.